The Hindu Business Line : Parthasarathi Shome quits as Advisor to Finance Minister

Official sources said that Dr Shome still had about two more years for completion of his term. The reasons for his resignation could not be ascertained.

Dr Shome was not available for comment. He had become advisor to the Finance Minister in October 2004 and got an extension in September 2006.

Dr Shome’s exit from the Finance Ministry assumes significance as an entirely new but experienced team would now assist the Finance Minister, Mr P Chidambaram, in presenting his fifth budget under the UPA regime.

Considered as the chief architect behind certain innovative taxes like fringe benefit tax (FBT) and Banking Cash Transaction Tax (BCTT), Dr Shome, who held the rank of Secretary to the Government of India, also played a key role in introduction of new concepts like large taxpayer units (LTU) in the country.

A number of his ideas on the tax policy and administration, however, met with some resistance from trade and industry.

As a representative of Finance Ministry and permanent invitee to the Empowered Committee of State Finance Ministers on VAT, Dr Shome played a crucial role in introduction and implementation of state-level value added tax (VAT) regime since April 2005.

He has also been the co-convenor of committee that looked at roadmap for introduction of goods and services tax (GST) in the country.

Among the possibilities of his future assignments is a stint at the Delhi School of Economics (DSE) as Professor in Public Finance.